HB 613 Modifies provisions relating the collection of property taxes

Current Bill Summary

- Prepared by Senate Research -


SCS/HCS/HB 613 - This act modifies provision relating to collection of property taxes.

COUNTY COLLECTOR FEES (52.260)

Under current law, county collectors must collect a specified amount of fees for collecting local taxes. In counties where the total amount levied in a year is between $350,000 and $2 million, the fee is 2.5 percent on the first $350,000 collected and 1 percent on the rest. In counties where the total amount levied exceeds $2 million, the fee is 1 percent on all amounts collected.

This act raises the outer threshold amount for a county to be eligible to collect the 2.5 percent on the first $350,000 to $3 million.

This provision is identical to SB 405 (2015), HB 1269 (2015). This provision is identical to a provision in HCS/HB 1154 (2015), HCS/SS/SCS/SB 87 (2015), and HCS/SCS/SB 245 (2015).

TAX COLLECTION IN FORMER TOWNSHIP COUNTIES (65.620)

This act allows counties in which townships have been abolished to continue to collect a property tax on a county-wide basis for road and bridge purposes for either one year following the abolishment of the townships or until the county voters have approved a property tax for such purposes, whichever occurs first.

The property tax must be the same amount as the property tax being levied in the township with the lowest total tax rate immediately before the townships were abolished.

This act specifies that the collection of the property tax is to be considered a continuation of a tax and not a new tax.

This provision is identical to SCS/SB 245 (2015). This provision is identical to a provision in SS/SCS/HCS/HBs 517 & 754 (2015), HCS/SS/SCS/SB 87 (2015), and HCS/SB 405 (2015).

RENTAL MERCHANDISE PROPERTY TAX EXEMPTION (137.018)

This amendment specifies that certain merchandise whether or not subject to a short term rental and which will ultimately be sold shall be considered inventory for property tax purposes and exempt from taxation. The amendment is limited to general rental centers and construction, mining, and forestry equipment rental.

This provision is similar to SB 314 (2015) and HB 879 (2015). This provision is similar to a provision in SS/HB 616 (2015).

ASSESSMENT OF PROPERTY WITH CERTAIN RESTRICTIONS (137.076)

This act requires county assessors to use the income based approach when assessing parcels of real property with certain restrictions imposed on the property in connection with state or federal subsidies used on the property.

This provision is similar to a provision in HCS/SS/SCS/SB 115 (2015), HCS/SB 148 (2015), and HCS/SS/SB 314 (2015).

REAL PROPERTY TAX SALES (140.170 - 140.410)

Currently, a county collector may advertise without a legal description or the names of the record owners, tax delinquent lands meeting certain requirements and which have an assessed value of $1,000 or less. This act increases the assessed value limit to $1,500 or less.

The act authorizes any collector, tax sale purchaser, or the agent of either to enter on the land of the another without being guilty of trespass if in the course of providing notice of a tax sale or tax sale redemption rights.

Currently, property must be redeemed within one year of a tax sale if the property is sold at a first or second offering. This act allows owners of property to redeemed until such time that the purchaser acquires a deed to the property.

The act prohibits costs incurred by a tax sale purchaser prior to March first after the tax sale from being included in the costs required to be paid by an owner before the property may be redeemed. County collectors will make the determination as to what are reasonable costs of sale a redeeming property owners must pay.

Currently, minors and incapacitated person must redeem property within one year of a disability being removed. This act requires redemption within five years of the last payment of taxes on the property by the minor, incapacitated person, or the representative of either.

Currently, tax sale purchasers must provide a title search to acquire a collector's deed. The title search cannot be more than 120 days from the date of application for the deed. This act removes the 120 day restriction.

The act specifies requirements for a tax sale purchaser to be issued a collector's deed. The act also specifies how notice maybe served on a minor or incapacitated person outside the United States.

Currently, tax sale purchasers must record a deed on the property within two years of the tax sale. This act requires a recording within 18 months.

SPECIAL ROAD ROCK FUND (231.444)

Currently, certain counties are authorized to levy an additional real property tax for deposit into a Special Road Rock Fund. Proceeds in the fund are to be used for purchasing road rock to be placed on county roads. This amendment authorizes all third and fourth class counties to levy such a tax if approved by the voter of the county.

This amendment is identical to SB 339 (2015) and SCS/SB 573 (2014). This amendment is similar in concept to HB 324 (2015).

MIKE HAMMANN


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